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Chapter 10 Structure and Design.

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Presentation on theme: "Chapter 10 Structure and Design."— Presentation transcript:

1 Chapter 10 Structure and Design

2 organizing - the process of creating an organization’s structure
organizational structure - the formal framework by which job tasks are divided, grouped, and coordinated organizational design - process of developing or changing an organization’s structure

3 Structure is how we divide, group and coordinate…
Six elements involved in org. design: Work specialization—tasks divided into separate jobs Departmentalization—jobs grouped together Chain of command—line of authority Span of control—how many employees supervised Centralization/decentralization—who makes decisions Formalization—standardized jobs?

4 Departmentalization: the basis by which jobs are grouped together
Work Specialization: the degree to which tasks in an organization are divided into separate jobs Departmentalization: the basis by which jobs are grouped together functional - groups jobs by functions performed product - groups jobs by product line geographical - groups jobs on the basis of territory or geography process - groups jobs on the basis of product or customer flow customer - groups jobs on the basis of common customers

5 Functional Geographic Sales Director, Western Region Southern Region
Manager, Engineering Manufacturing Human Resources Purchasing Plant Manager Accounting Sales Director, Western Region Southern Region Eastern Region Vice President for Sales Midwestern Region Geographic

6 Inspection and Shipping
Process Sawing Department Manager Planning and Milling Assembling Lacquering and Sanding Finishing Superintendent Inspection and Shipping

7 Customer Manager, Retail Accounts Director of Sales
Government Accounts Wholesale Accounts

8 Chain of Command authority - the rights inherent in a managerial position to tell people what to do and to expect them to do it responsibility - the obligation to perform any assigned duties unity of command - a person should report to only one manager???? (project/matrix)

9 Span of Control: number of employees that a manager can efficiently and effectively manage
Affects the number of levels and managers in an organization Wider the span, the more efficient the organization Influenced by: the skills and abilities of employees the complexity of tasks performed availability of standardized procedures sophistication of organization’s information system

10 Centralization: the degree to which decision making is concentrated at a single point in the organization Decentralization the degree to which decisions are made by lower-level employees distinct trend toward decentralized decision making

11 Formalization: the degree to which jobs within the organization are standardized
standardization - removes the need for employees to consider alternatives extent to which employee behavior is guided by rules and procedures employee allowed minimal discretion in highly formalized jobs explicit job descriptions clearly defined procedures

12 Mechanistic Organization
rigidly and tightly controlled structure tries to minimize the impact of differing human traits most large organizations have some mechanistic characteristics Organic Organization highly adaptive and flexible structure permits organization to change when the need arises employees are highly trained and empowered to handle diverse job activities minimal formal rules and little direct supervision

13 Contingency Factors Strategy and Structure - structure should facilitate the achievement of goals; strategy and structure should be closely linked Focus innovation - need the flexibility and free flow of information of the organic structure cost minimization - seek efficiency, stability, and tight controls of mechanistic structure imitation - use structural characteristics of both mechanistic and organic structures

14 Size and Structure - size affects structure at a decreasing rate
Technology and Structure technology - converts inputs into outputs unit production - production of items in units or small batches mass production - large-batch manufacturing process production - continuous-process production mechanistic structure supports routine technology organic structure supports nonroutine technology

15 entire organization is made up of work teams
Team-Based Structures entire organization is made up of work teams Matrix Structure assigns specialists from different functional departments to work on projects led by project managers Autonomous Internal Units independent, decentralized business units Boundaryless Organization design is not defined by, or limited to, the horizontal, vertical, or external boundaries imposed by a predefined structure

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